I feel like I could live a frugal NEET lifestyle with that much. So if a diversified portfolio of solid dividend stocks yields 5% per year, I would need 12 000 / 0.05 = $240 000 nest egg. Does that sound right? How realistic is 5% yearly? Also I guess inflation would eat away at my purchasing power by 3% per year, so in 10 years, $1000 would only be worth 0.97^3 * 1000 = $730, and only $540 in 20 years. And how would taxation work on that? Do they tax passive income differently even if it's not much? And what is the rationale behind our financial system remaining solvent for the foreseeable future?
How much money do I need to generate 1000 dollars per month in passive income?
Lucas Rogers
Christian Thomas
>5% per year
Terrible. You're making less than the jews at Defi Money Market will give you for doing absolutely nothing in a savings account (6.25%). M2 supply expansion is roughly 5% per year so everything below that you're losing money.
Owen Jones
my calculation for germany
for €2000 a month i need 24000 a year
24000 is only 75% because i have to pay a 25% tax on capital income.
so i need to yield 32000k a year.
assuming i can get a 4% yield i need a total of 800k
if i apply to university i only pay about 90 euro a month for healthcare.
Robert Campbell
About 300k
Jaxson Foster
I was unironically pursuing the landlord dream until coronachan hit, conventional thinking still points me in that direction once this all brushes over but LINK staking also seems promising
Aiden Richardson
>Also I guess inflation would eat away at my purchasing power
You're also assuming that your dividends will stay the same. Which is not the case, dividends can be cut if the companies are not doing well. However, if they do well, they can increase their dividend with time (hopefully negating the effect of inflation).
However, be aware that a stock with a high yield might not be a good buy, since it might mean the stock is cheap because it's a struggling company (they might cut their dividends in the future, or go bust).
Also, dividends are kind of irrelevant, and you might actually have to pay more taxes, or hurt your portfolio by diversifying less.
Here's a good analysis of it: youtube.com
Andrew Powell
>the jews at Defi Money Market will give you for doing absolutely nothing in a savings account (6.25%).
Can you elaborate? Interest in "high interest" savings accounts here have plummeted 10x since this corona thing. Also can you explain the M2 supply expansion thing? I always heard inflation was about 3% per year
How are you going to get 800k? If you save it over a long time (decades) its purchasing power will be drastically reduced
Asher Hall
I was thinking diversifying would mitigate the dividend fluctuate. The whole dividend vs. selling appreciating shares is a mess in itself I don't understand.
Levi Hernandez
>How do you make money or How to get rich
crypto and gold
Noah Smith
How old are you?
Brandon Hill
20, why?
Carter Watson
Interest is artificially suppressed so people are pressured to spend more and increase the price of assets ("growth"). This is why housing prices have gotten out of control, for example. DMM are currently offering a service where they offer a glorified savings account with 6.25% interest rate, which you can get right now if you're savvy about crypto. This is easily sustained at a profit when leasing out assets.
"Inflation" is a snake term invented to hide money debasement. It shifts the goalpost from how much money exists to some bureaucrat's concept of a basket of worthless consumable goods that you should be able to buy with it. This means technological advancement and outsourcing supply chains to China, which would normally decrease the price of consumer goods, hides the lost value of money instead.
You can see the expansion of money in existence (in trillions) here:
tradingview.com
You can also see how the goalposts keep getting shifted more and more to hide worse and worse results at Shadowstats, which publish inflation statistics for current data using old methodology that the government used to apply itself.
shadowstats.com
Joshua Harris
>I was thinking diversifying would mitigate the dividend fluctuate.
Yes it will.
But what I mean is that focusing on owning only dividend paying stocks will limit your diversification and opportunities, since a lot of great stocks to own do not pay dividends.
Also, as the video that I posted explains, dividends are irrelevant for your total returns, which should be what you focus on.
Brayden Turner
Was checking at what age you wanted to do NEET lifestyle and how viable it would be. You good.
Blake Kelly
Why don't you do something you like for a living and stop trying to get a free pass? Your life would be worthless just NEETing around all day.
Anthony Sanders
Once you go dividend investing you won't go back. I have a mix of monthly paying stocks and quarterly which pay every 3 months.
Brody Brooks
Post stocks
Xavier Gutierrez
Dont worry about dividend. Invest in the most aggressively growing sectors of the economy that will disrupt today's existing firms.
TSLA comes to mind, but also ILMN, SQ, and others.
$VGT is IMO a reliable workhorse that generated 20% returns in the past 3-year and 5-year marks and increasing, as tech plays a larger and larger role in society.
Work hard and invest in up and coming disruptions, there's so much more to life than NEETing and yielding.
Nathan Campbell
Andrew Morris
On paper, 100k USD in VGT should increase >20% YOY, with some low return years due variance.
I think drawing 3k - 20k every year is feasible in this scenario, without depleting 100k capital.
Xavier Hill
OP you need to check out the /r/leanfire subreddit
They are built on this type of shit.
"Leanfire" = financial independence + retire early + lean (minimalist low cost lifestyle)
Ian Ward
All those pay monthly. The rest pay quarterly
Elijah Howard
And then I have 2 shares of ko
Levi Ortiz
buy an index fund. just go Long dow 30 after the crash and you are gucci my fren. about 120k sounds right
Daniel Gonzalez
You can up that to 6.5% a year if you're edgy and less diversified. For example, Merck and T divies are roughly 6-6.5% collectively
Zachary Richardson
Enough invested to make 1000k a month is enough invested to lose 1000k a day
Aiden Evans
get a job and get a mortgage on a house and rent it. sell it 30 years later
Adrian Martin
You need to do the research on safe withdrawal rates (5% per year is unrealistic) and sequence of return risk because what you're basically describing is an early retirement. Here's a good, long read:
earlyretirementnow.com
Brody Reed
$150,000 in Altria shares will pay quarterly dividends that amount to $1200 a month (yield 8.3%) If you just need $1200 a month, you could apply for social security disability. That would get most people with a work history at least that much and plus you would be eligible for food stamps.
Nathan White
You forgot MO which had one of the best business records in history until their acquisition of JUUL.
Camden Ramirez
Thought you were disqualified for any social assistance if you had any sizable assets. I'm in Canada anyway